SoftBank Launches Record $11 Billion Bond Sale for OpenAI
SoftBank issued $11.15 billion in senior notes to fund its OpenAI stake, setting a new record for Asian corporate debt.
Key points
- SoftBank issued $10 billion in dollars and €1 billion in euros to fund its OpenAI stake.
- The deal sets a record for the largest nonfinancial corporate bond sale from Asia-Pacific.
- Fitch Ratings assigned the notes a BB+ rating, indicating high speculative-grade risk.
SoftBank launched an $11.15 billion bond sale on Monday to fund its OpenAI investment. The transaction combines $10 billion in dollar notes with €1 billion in euro-denominated issues. This structure aims to replace a previous bridge loan facility.
The deal is set to become the largest nonfinancial corporate bond issuance from Asia-Pacific. It surpasses the $10.93 billion raised by 7-Eleven in 2021. Pricing is scheduled for September 24 with settlement on September 29.
Proceeds Replace Bridge Loan Facility
The term sheet allocates funds to SoftBank’s $10 billion contribution to OpenAI. This third tranche investment is slated to close on October 1. The bonds will also serve general corporate purposes.
Fitch Ratings assigned the notes a BB+ rating, the highest speculative-grade level. The agency expects SoftBank’s leverage to rise as it meets these commitments. However, the company should maintain sufficient liquidity and market access.
Deal Structure And Bank Roles
Dollar notes span 3.5, 5.5, and 7.5-year tenors. Euro notes carry four-year and six-year maturities. Citigroup leads the dollar book while JPMorgan leads the euro portion.
Goldman Sachs and Morgan Stanley join as global coordinators for the dollar tranche. Deutsche Bank and Goldman Sachs coordinate the euro notes. This syndicate reflects the scale of the international offering.
Strategic Context And Market Position
This issuance deepens SoftBank’s financial ties with the ChatGPT maker. Total investment in OpenAI will reach approximately $64.6 billion. This represents an ownership stake of roughly 13 percent.
The American Bazaar reported that SoftBank is also negotiating a separate investment. The target is Seven & i, the retail giant behind 7-Eleven. This parallel move signals continued aggressive capital deployment by the conglomerate.
